American authorities have arrested three New York merchants accused of importing and selling counterfeit Louis Vuitton, Gucci and Burberry handbags in an extensive ring believed to be among the largest of its kind in the U.S.

Chong Lam, Siu Yung Chan and Eric Yuen face one count of conspiracy to traffic in counterfeit goods, four counts of trafficking in counterfeit goods and two counts of smuggling counterfeit goods.

The three men are accused of smuggling 300,000 counterfeit bags and accessories from China. The goods were received in shipping containers in U.S. ports between August 2002 and November 2005, authorities say.

Sales of the bags are believed to have reached at least $16 million US.

The value of the corresponding actual luxury bags is estimated to be worth more than $100 million US.

Counterfeited goods accounted for between five and seven per cent of world trade in 2006, according to the International Anti-Counterfeiting Coalition.

Each year, the RCMP conducts more than 400 investigations into counterfeit goods across the country.

With files fromt he Associated Press